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Magnum Hunter Resources Corp. Message Board

  • nypd2726 nypd2726 Apr 19, 2013 11:12 AM Flag

    Re. BDO

    This is becoming more and more farcical:

    "WASHINGTON, D.C. (JUNE 13, 2012)
    BY MICHAEL COHN
    The Internal Revenue Service said Wednesday it has reached a settlement with BDO USA LLP under which the accounting firm will pay a civil penalty of $34.4 million for violating tax laws concerning tax shelters.

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    The firm, formerly known as BDO Seidman LLP, did not register various tax shelters as required by law. The IRS said some of the tax shelters were abusive and fraudulent, and the firm did not register them in an effort to conceal the tax shelters from the IRS and help high-income taxpayers evade federal income taxes.

    The $34.4 million penalty is part of a $50 million payment that BDO has agreed to pay the United States in connection with the filing of an Information charging the firm with one count of engaging in a tax fraud conspiracy from approximately 1997 to 2003, and a deferred prosecution agreement with the United States for the criminal charge if specific conditions are met. The $15.6 million portion will be paid to the Justice Department."

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    • Chill. You can also google IRS and Price Waterhouse and get similar settlements.

    • June 2012 article about resolution of something that happened how many years ago? really..?

    • "Oh what a tangled web we weave when first we practice to deceive"

    • entertainmentinvestlng entertainmentinvestlng Apr 19, 2013 11:20 AM Flag

      Directly from IRS website:

      WASHINGTON — The Internal Revenue Service today announced that it has a reached a settlement with the accounting firm of BDO USA, LLP (formerly BDO Seidman LLP, hereafter “BDO”). Under the settlement, BDO will pay a civil penalty to the IRS of slightly more than $34.4 million stemming from its violation of the tax law concerning the registration of tax shelters. BDO did not register various tax shelters as required by law, some of which were abusive and fraudulent, in an effort to conceal the tax shelters from the IRS and assist high-income taxpayers evade federal income taxes.

      This penalty is part of a $50 million payment that BDO has agreed to pay the United States in connection with the filing of an Information charging the firm with one count of engaging in a tax fraud conspiracy from approximately 1997 to 2003, and a deferred prosecution agreement with the United States for the criminal charge if specific conditions are met.

      In addition to the civil penalty payment, BDO has agreed to cooperate with the IRS in civil matters, including IRS audits and litigations relating to its tax shelter products, and to work with the IRS to ensure that it is in compliance with federal tax laws involving tax shelters.

      "Today's enforcement action is another reminder that taxpayers can't hide behind complicated schemes or corporate tax shelters," said IRS Commissioner Doug Shulman. "The IRS is strongly committed to stopping illegal tax shelters."

      The IRS is pleased with BDO’s commitment to cooperate with the IRS in civil matters involving tax shelters and to ensure that it fully complies with the federal tax laws involving tax shelters.

      • 1 Reply to entertainmentinvestlng
      • entertainmentinvestlng entertainmentinvestlng Apr 19, 2013 11:27 AM Flag

        The point is, why MHR didn't solve the accounting issues with PwC and dismissed them. Then, they hired BDO USA???

        If you look at 8K issue few days ago, the company said that it wouldn't pay out the dividend until they complete the annual report, i.e. having a new accounting firm to understand the detail of its financials, it will take more than few months.

        Soon, the company announces that it would delay 10K due to the preparation... then, a write-down on assets... renegotiation with debt holders... fire sale on its assets to keep the liquidity... suspension on dividend payout... additional share sale on common stock... some change on management team... NYSE delisting...

 
MHR
6.43-0.43(-6.27%)Jul 31 4:01 PMEDT

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